General Atlantic, TPG might invest $100 m in Amagi | Mint

General Atlantic, TPG might invest $100 m in Amagi

Stock market today: The short term trend of Nifty has turned sharply on the upside, believe analysts. (iStock)
Stock market today: The short term trend of Nifty has turned sharply on the upside, believe analysts. (iStock)

Summary

The transaction, through the sale of new and existing shares, is a markup from what it was valued in March, the people said, requesting anonymity

MUMBAI : Private equity giants General Atlantic and TPG are in talks to invest $100 million in media technology firm Amagi, valuing the company at around $1.4 billion, three people with direct knowledge of the development said.

The transaction, through the sale of new and existing shares, is a markup from what it was valued in March, the people said, requesting anonymity.

“Some existing employees and early-stage investors will partially sell their stake to bring on board a new investor," one of the three people said. “Around $40 million of the total fundraising will be secondary share sale," the person added.

Amagi, which helps media companies create, distribute and monetize streamed content, has crossed $100 million in revenue run rate and is profitable, a rarity among high-growth startups and unicorns minted through 2021 and this year.

“There is considerable interest in high-growth companies that have demonstrated better unit economics and are already profitable," said the second person cited above.

A company spokesperson, however, denied that the company plans to sell shares. “Amagi raised $95 million from investors only in March this year. We are not looking for new investments at the moment," the Bengaluru-based company said in an email response. Queries emailed to a spokesperson for General Atlantic remained unanswered. A TPG spokesperson declined to comment.

Amagi raised $95 million in March, in a round led by venture capital firm Accel, at a unicorn valuation. In September 2021, it raised $100 million from Accel, Avataar Ventures and Norwest Venture Partners. It also counts Nadathur Holdings, the venture investing arm of N.S. Raghavan and Premji Invest as its investors.

Amagi is in talks to raise a new round as it has “aggressive global plans", and more funds will help it execute its strategy of expanding in other markets, the third executive cited above said.

“The company wants to grow manifold, and that will come from its overseas expansion plans," the person said.

Founded in 2008 by Baskar Subramanian, Srinivasan K.A. and Srividhya Srinivasan, Amagi is a software as a service, or SaaS, company that provides cloud broadcast and targeted advertising software.

Demand for Amagi’s services is rising as consumers worldwide binge on movies and TV shows, with the pandemic providing an added boost. The startup’s clients include NBCUniversal, CBS, USA Today, and Japan’s Rakuten Group Inc. Amagi’s platform connects content owners and distribution channels. The company’s customer count increased by 59% in 2021 and is now spread over 40 countries. The company supports more than half a million content brands and over 2,000 delivery channels.

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